Italy's 2025 in Structured Finance So Far: NPLs on the Decline

Italy's securitisation market has been losing steam, with new issuance decreasing every year since 2021. Part of that decline can be traced back to the nonperforming loan (NPL) sector, in which new issuance fell more than 95% between 2021 and 2024. This year there has been no new NPL issuance yet, which has occurred later in the year since 2023, but it is notable in the context of the decreasing trend. However, there could be a new subcategory of NPLs if the Italian government were to allow unpaid fiscal claims to be securitized (see "Italian Unpaid Fiscal Claims: A Potential New NPL Subcategory"). The topic is still in discussion among the Italian government and other parties and has faced some setbacks. As of this publication, the latest development is that the provision for securitisation of unpaid claims received a negative opinion from the State General Accounting Department.